Which VoIP Solution is Right for My Business?

If you’re looking for a VoIP solution for your business, there are two options you should consider: Purchasing your own IP-enabled PBX (Private Branch Exchange) and managing the system in-house; or working with a hosted VoIP service provider to pay a monthly fee for a Hosted PBX solution where they manage, maintain and upgrade the system for you.

Below are the major characteristics of each solution to aid you in your decision:

On-Premises VoIP System – In this solution you pay for and own all the hardware and software required to make your telephone service function. This equipment is housed at your facility.

The primary benefit of an on-premises VoIP solution is control – you remain in control of your entire phone service. You determine the functionality you need and configure the system accordingly; you install the desired system and maintain, repair and upgrade it as you see fit.

With this solution, you will need to have the required expertise in-house to perform these functions. In addition, this solution will require significant upfront capital available to purchase your system and invest in future upgrades.

According to industry experts, an on-premises VoIP solution makes sense if your business priority is control – control over functionality and adherence to regulatory requirements. Your on-site team can decide how best to administer and upgrade your phone system. They can also customize functionality to your business requirements and integrate applications as needed.

If you would prefer to manage and maintain your own system and have the capital readily available to invest in technology, an on-premises solution may be your best choice.

Hosted VoIP Solution – With a Hosted VoIP solution, you have minimal upfront capital outlay for the IP-enabled PBX and the total cost of ownership compared with a premise-based system is typically much lower over the lifetime of the service. In most scenarios, you pay a monthly fee on a per user basis.

With this solution you’ll likely lease or purchase IP desktop phones, and few, if any, additional on-site components. The service provider is responsible for purchasing, housing, maintaining and upgrading the required infrastructure technology.

This solution is also flexible and scalable as your business needs grow or change. You can start with what you need today in terms of capacity and increase your number of lines or speed as needed.

Setting up and managing your hosted VoIP solution is typically very turnkey. Most solutions provide an administrative portal for you to configure your system from an in-house computer. And if a natural disaster or other unplanned outage strikes, your system can continue to function and re-route calls since it is based off-site.

Chris is the former Vice President of Product Management at FairPoint Communications, a leading provider of advanced communications technology in northern New England and 14 other states across the U.S.